Abstract
We offer a new, succinct proof that the money metric utility is concave for any preference relation representable by a concave function if and only if the indirect utility is affine in wealth. The proof exploits the existence of a least concave representation established in Debreu (1976), a connection which shows the money metric to be itself a least-concave representation of the preferences if it is concave, an observation not heretofore made before.
Full Text
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call